On 7 November 2024, Larysa Vrublevska, Auditor, Partner, Head of Transfer Pricing Practice at EUCONLAW Group, delivered a presentation on “Current issues of transfer pricing 2024’”at the seminar of the Ukrainian Taxpayers Association. In her report, she highlighted the current issues of preparing transfer pricing reports and the main changes in the transfer pricing regulation expected from 01.01.2025.
Larysa Vrublevska noted that improvement of the Ukrainian taxation system in the field of transfer pricing is one of the priority tasks of the National Revenue Strategy until 2030. Among the latest innovations, she noted the introduction of an innovative IT solution for managing international taxation risks – the Integrated Computer System ‘Automated System for Processing Large Arrays of Data for Transfer Pricing Risk Analysis’ (ICS Big Data TP).
The speaker also noted that in 2024, the State Tax Service of Ukraine carried out the first international automatic exchange of information under the CRS Standard, which facilitated the receipt of data from more than 50 foreign jurisdictions and the sending of information to more than 30 jurisdictions.
The expert discussed in detail the changes that will come into force on 1 January 2025. Among them are new criteria for determining the relatedness of legal entities, which will take into account the share of transactions with non-residents in the total amount of income and expenses. In addition, she pointed out the possibility of regulatory authorities to establish the fact of relatedness based on the results of inspections, using the actual circumstances of transactions and activities in general. In addition, the updated criteria for the formation of the new List of Jurisdictions were discussed in detail.
Larysa Vrublevska also covered important issues related to the preparation of transfer pricing documentation. She discussed in detail the aspects of comparability of transactions, application of new procedures for controlled transactions with commodities, as well as the most common deficiencies in TP documentation, in particular in the context of the 2023 reporting campaign. Particular attention was paid to the aspects of self-adjustments and constructive dividends, liability for violation of TP rules during martial law, as well as analysis of the case law of the Supreme Court of Ukraine.